TORONTO, Jan 27 (Reuters) - The Canadian dollar weakened
slightly against the U.S. currency on Tuesday, pressured by
sagging oil and metal prices, while the federal government's
budget had little impact on the currency.

The weakness followed four straight sessions of gains
against the greenback, largely due to firmer commodity prices
and easing risk aversion.

Canadian bond prices were largely higher on Tuesday,
following the U.S. Treasury market higher after recent pressure
due to persistent concern about swelling supply.

The Canadian dollar officially closed at C$1.2263 to the
U.S. dollar, or 81.55 U.S. cents, down from C$1.2241 to the
U.S. dollar, or 81.69 U.S. cents, on Monday.

Shortly after 4 p.m. (2100 GMT), the Conservative
government unveiled a budget and stimulus package that promised
billions in tax cuts and spending to help pull the economy out
of recession, laying out plans for a budget deficit for the
first time after 11 straight years of surplus. [ID:nN27408307]
Continued...